I bought a Condo for $10,000 .... Maybe!

By
Real Estate Agent with The Keyes Company 3195704

Here in Florida Home Owner Associations (HOA) and Condo Owners Association (COA) can be very confusing. In the state of  Florida  most HOA and COA have the power to put a lien on the property if the homeowner becomes delinquent in paying the monthly dues and/or any special assessments.

There are new laws on the books that place priority on these liens sometime so that they move to the tops and get paid first. I said sometime, you see some court have ruled in favor of the lender who holds a mortgage on said property. In that case the lender has the right to foreclosure on the property again for the amount of the mortgage owed.

So if there is a mortgage on the property you can purchase the HOA/COA lien and still possibly owe the current mortgage. These stories hit the news maybe once a year where the buyer thinks he owns a condo for the $10,000  lien he purchased only to find out the mortgage company  is now coming after their money now.

Buyers beware use a professional  before investing in something you not 100% sure of. Ask question and don't rush into something you may regret later.

Comments (1)

Kristin Johnston - REALTOR®
RE/MAX Realty Center 262-567-2455 - Waukesha, WI
Giving Back With Each Home Sold!

Wow that does sound too good to be true...always be cautious!

Feb 11, 2017 08:33 AM